AI-powered lending platform Upstart (NASDAQ:UPST) will be announcing earnings results tomorrow after the bell. Here’s what to expect.
Upstart beat analysts’ revenue expectations by 20.1% last quarter, reporting revenues of $219 million, up 56.1% year on year. It was an exceptional quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations.
Is Upstart a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Upstart’s revenue to grow 58.7% year on year to $202.8 million, improving from the 24.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.17 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Upstart has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Upstart’s peers in the vertical software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Cadence delivered year-on-year revenue growth of 23.1%, meeting analysts’ expectations, and PTC reported revenues up 5.5%, topping estimates by 5%. Cadence traded up 5.7% following the results while PTC’s stock price was unchanged.
Read our full analysis of Cadence’s results here and PTC’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 14.1% on average over the last month. Upstart is up 31% during the same time and is heading into earnings with an average analyst price target of $73.92 (compared to the current share price of $49.62).
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